Daily Buzz: 23 May 2025
Top News
Chinese students at Harvard face visa revocation
Chinese students studying or planning to study at Harvard University will be among the hardest hit by the Trump administration decision to end the program that provides foreign students with visas to the elite school. In announcing the halt, Homeland Security Secretary Kristi Noem accused Harvard of "fostering violence, antisemitism, and coordinating with the Chinese Communist Party."
Harvard enrolled nearly 6,800 international students in the 2024-25 school year, amounting to about a quarter of total enrollment. Each year, anywhere from 1,800- 2,300 Chinese students and scholars study at Harvard, the largest foreign population on campus.
US President Trump earlier froze billions of dollars in federal grants to Harvard after the university refused to make changes to hiring, admissions and teaching practices demanded by the administration.
US debt remains in focus
The US House of Representatives narrowly passed US President Trump's massive tax-cut and spending bill, a day after the debt implications of the legislation spooked investors. Markets were muted in response, after US bond yields spiked, stocks fell sharply and the dollar lost ground a day earlier. The legislation would add US$3.8 billion to the existing US$36 trillion national debt. The bill now heads to the Senate, where changes are expected.
Following the vote, the S&P 500 index lost 0.04 percent, and the 30-year Treasury bond yield retreated from a two-year high but remained above the 5 percent level. Bitcoin, seen as a safe investment haven, surged to a record US$110,000.
Borrowing costs have risen after Moody's downgraded the sovereign rating of the US last week. The US depends on the Treasury market to fund deficit spending.
Israeli embassy staff shot dead in Washington
Two young staff members from the Israeli embassy in Washington were shot dead near a Jewish museum by a man shouting, "Free Palestine." The suspected shooter was detained by police. Israeli officials condemned the antisemitic attack and some in the government blamed all the recent international criticism of Israel, after the UK, France and Canada condemned Israel's new ground offensive in Gaza and called for Israel to end restrictions on humanitarian aid for Gaza. Flour and other humanitarian help began reaching Gaza residents on Thursday as Israel eased its 11-week blockade to allow a trickle of aid trucks across the border.
North Korean warship damaged
A public ceremony marking the addition of a 5,000-tone destroyer to North Korea's naval fleet ended in disarray after the ship tipped on the slipway, causing damage to sections of the hull, the state-run KCNA news agency said on Thursday. Leader Kim Jong-un, who attended the ceremony, called it a "criminal act" caused by "carelessness and irresponsibility."
Top Business
Lenovo posts profit decline
China's Lenovo, the world's largest personal computer maker, reported a 64 percent plunge in profit to US$90 million for its fourth quarter ended March 31, despite a 23 percent increase in revenue from a year earlier to US$16.9 billion. Its shares traded in Hong Kong plunged 5.4 percent. For its full fiscal year, profit rose 37 percent to US$1.4 billion on a 23 percent gain in revenue to US$69.08 billion.
Lenovo Chief Executive Yang Yuanqing, in a conference call with investors, blamed US tariffs, in part, for the quarterly profit decline.
JP Morgan commits to China investment
Jamie Dimon, chief executive of US investment bank JPMorgan Chase, said his firm is committed to long-term investment in China despite trade tensions between the US and China. He cited China's rapid growth in new technologies and its global prominence.
"We're a long term investor here," he told a Bloomberg TV interview at the Global China Summit in Shanghai. "We have to deal with the world that we have, not the world we want."
JP Morgan was an underwriter on Chinese battery giant CATL's successful US$4.6 billion initial public offering in Hong Kong this week.
Cognac trade
China and France agreed to move quickly to resolve a trade dispute over cognac tariffs, French President Emmanuel Macron said after a phone call with Chinese President Xi Jinping on Thursday, the South China Morning Post reported.
French cognac has been subject to a Chinese anti-dumping investigation into EU brandy since January. The investigation was extended in April, giving EU exporters more time to find a way to avoid Chinese penalties.
"We have agreed to move forward as quickly as possible on the issue of cognac, which is essential for our producers," Macron wrote in a post on social media, reaffirming his nation's welcome to Chinese investment in France.
Economy
Trade-in policies produce sales
Some 34 million Chinese consumers in the first four months of this year took advantage a government program that offers subsidies when they trade in old model goods to buy new ones. The Ministry of Commerce said on Thursday that consumers bought 51 million home appliances in sales valued at 174.5 billion yuan (US$24.3 billion). The program is part of efforts to spur consumer spending.
Existing home prices drop
Prices for existing homes sold in China in April fell 0.7 percent from February and 7 percent from a year earlier, according to the China Index Academy. Prices in large urban areas dipped 0.36 percent from March, while those in smaller cities fell about 0.7 percent. China recently lowered mortgage interest rates to bolster the property market.
Bonds to finance tech companies
The People's Bank of China reported that nearly 100 institutions have issued over 250 billion yuan (US$34.7 billion) in science and technology innovation bonds. Zhu Hexin, vice governor of the central bank, said the bank is stepping up efforts to improve funding access for technology firms.
Corporate
BYD Dolphin Surf debuts in Europe
Chinese electric carmaker BYD launched its low-cost Dolphin Surf model in Europe, with prices ranging from 22,990 euros (US$26,100) to 24,990 euros.
"The compact segment is the next frontier for electrification in Europe," Maria Grazia Davino, BYD regional managing director for markets, said at an appearance in Berlin, according to a Reuters report. "We think this market has huge potential."
BYD this year surpassed Tesla as the world's largest electric vehicle manufacturer.
Huawei-UBTech Robotics form alliance
Huawei Technologies announced a partnership with UBTech Robotics to develop humanoid robots for use in factories and households. The agreement - signed in the southern Chinese city of Shenzhen, where both companies are based - seeks to accelerate industrial application of robots increasingly designed to mimic the actions of humans.
Huawei will also help UBTech establish an innovation center focused on what is called "embodied intelligence," a form of artificial intelligence that embeds cognitive chips in human bodies.
Shanghai drone maker to set up research facility
HiTS (Shanghai) Hydrogen Power Technology, which is developing commercial drones powered by hydrogen fuel cells, plans to set up research and assembly operations in Hong Kong, the South China Morning Post reported. The company called on the Hong Kong government to adopt policies to promote activities in airspace below 1,000 meters.
Alibaba to expand global cloud development
Alibaba Group Chief Executive Wu Yongming announced that Alibaba Cloud will accelerate the development of a unified global cloud computing network and expedite international access to the company's artificial intelligence products. The company plans to establish data service centers in Japan, Malaysia, Mexico, the Philippines, South Korea, Thailand and the United Arab Emirates this year.
